UK economy growing

Official figures showed today that the UK economy grew by 0.8% in the second quarter of 2014. The figures from the Office of National Statistics (ONS) show the economy is now larger than it was before the recession (0.2% ahead of its pre-crisis peak).

This news comes after The International Monetary Fund (IMF) upgraded its forecast for UK growth to 3.2% this year, and 2.7% in 2015, making Britain the fastest growing economy out of all of the major developed countries.

Screenshot 2014-07-25 10.07.11

The ONS said that output increased in two of the four main industrial groupings with the services sector leading the way, expanding by 1.0%. Production saw output increase by 0.4%. However, construction shrank by 0.5% as did agriculture by 0.2%.

The ONS’s preliminary estimates of GDP do not include a breakdown of spending. They are the first released in the EU, and are based partly on estimated data. Upcoming changes to the way the ONS calculates GDP are expected to show that the British economy passed its pre-crisis peak earlier than in the second quarter of 2014.

Critics argue that this recovery has been slow, with shadow chancellor Ed Balls arguing that this milestone was reached two years later than the Chancellor’s original plan, and three years after the US reached the same point. Additionally, it was pointed out that GDP per head is not set to recover to where it was for another three years.


Got an Enquiry?

Call us on
01277 823688

or send us an email today!

Latest News


Scam emails from ‘HM Revenue & Customs’

How to recognise legitimate communications from HMRC versus phishing/bogus emails and text messages…


Help and Support from HMRC for Sole Traders

Learn more about the online support HMRC provides sole traders – from webinars to videos they cover a wealth of topics to help the self-employed succeed…


Employment allowance changes

New employment allowance rules have come into affect – meaning many small limited companies are no longer eligible for the the £3,000 savings.